Sunset Strip | Aussie Afternoon Institutional Market Wrap
Aussie market remained flat with global sentiment while slightly negative banks were balanced out by the rest of the market being positive. Key indicators show (1) volatility index has broken it’s up trend (2) bond yields are beginning to lose steam from the recent bounce (3) currency has pulled back and now holding flat (4) banks selling beginning to subside (5) market holding above our yield weighted market fair value. We have been telling clients to take profit since early March at each time the index failed to break the 6000 mark on stretched valuations and relatively low yield outlook. Market is once again close to 5600 level where we see the yield weighted fair value for the market. Time to BUY Banks (NAB, ANZ, WBC, BOQ), Global Diversified Financials (MQG, BTT, HGG), Telecoms (TLS, SPK, AMM, VOC, MTU) and Healthcare (ANN, CSL, RHC, SRX)…Banks expected to outperform Big Miners short term…more return than risk now!!! (VIEW LINK)
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